The Department of Justice laid out multiple charges against an exiled Chinese businessman and his financier for orchestrating a fraud conspiracy that allegedly raked in over $1 billion from online followers.
Ho Wan Kwok, who went by multiple aliases such as “Guo Wengui,” “Brother Seven,” and “The Principal,” garnered an online following through his YouTube videos in which he criticized the Chinese government, and is an associate of Steve Bannon from when they formed GTV Media Group.
Ho was arrested Wednesday morning in New York, but his financier, Kin Ming Je, a dual citizen of Hong Kong and the UK also known as William Je, is still at large, according to the FBI. GTV’s website is offline and Ho’s Twitter account is suspended.
The DOJ alleges that Ho and Je’s scheme involved lying to victims about their investments and promising big returns if they gave money to Ho’s multiple ventures that included GTV, Himalaya Farm Alliance, G|CLUBS, and the Himalaya Exchange.
Ho and Je instead laundered the money to multiple bank accounts and made expensive purchases such as a 50,000 square foot New Jersey mansion, a custom Bugatti sports car for $4.4 million, a Ferrari worth $3.5 million, a $37 million luxury yacht and a $62,000 television, according to the DOJ. Kwok also purchased decor, furniture, Chinese and Persian rugs worth $978,000, the DOJ alleges.
The FBI is calling on people who believe they were victims in Je’s and Ho’s schemes to come forward and fill out a questionnaire.
Who is Ho Wan Kwok?
Known as Guo Wengui, he is a billionaire from China who came to the U.S. seeking asylum and accused powerful Chinese officials of corruption, the New York Times reported.
In a VICE News video, he showcased his 15-room New York City penthouse, where he was living in exile, that was purchased for $67.5 million.
According to a report from The New Yorker, he received a personal recommendation from former British Prime Minister Tony Blair who wrote that Ho was “honest, forthright and has impeccable taste.”
Last month, Ho applied for Chapter 11 bankruptcy, Politico reported, and was ordered to pay $134 million for attempting to avoid debt collection.
How many years do the DOJ charges hold?
Both Je and Ho face 11 of the same charges, but Je is facing an additional 20 years maximum in prison for obstruction of justice.
Both face the following charges:
-
Conspiracy to Commit Wire Fraud, Bank Fraud, Securities Fraud and Money Laundering – 5 years
-
Wire Fraud (GTV Private Placement) – 20 years
-
Securities Fraud (GTV Private Placement) – 20 years
-
Wire Fraud (Farm Loan Program) – 20 years
-
Wire Fraud (G|CLUBS) – 20 years
-
Securities Fraud (G|CLUBS) – 20 years
-
Wire Fraud (Himalaya Exchange) – 20 years
-
International Promotional Money Laundering – 20 years
-
International Concealment Money Laundering – 20 years
-
Unlawful Monetary Transactions – 10 years
-
Money Laundering – 20 years
